A significant portion of our life goes in the search of the perfect home, a cozy abode that can shelter us from the perils of the world and offer a sense of peace and calm. All residents of this city of ours- the city of ‘joy’, have dabbled with the idea of buying a flat in Kolkata. Some want to own a piece of the old-world charm associated with the Bangla capital, while others want to assert their independence and claim a bit of the city as their own. After all, no matter where life may take us during the course of the day, towards the end of it, we want to come home.
However, buying a flat in Kolkata is no small task! It requires significant financial planning, on-the-ground flat inspections, understanding the fair value of the diverse properties in Kolkata, and rigorous paperwork before you can truly ‘own’ your dream home. One may even wonder if it is worth the hassle to commit so many resources towards this time-consuming affair. Here is an extensive guide to help you buy flats in Kolkata. But, in this blog, we will discuss the benefits of buying a flat in Kolkata, since the advantages far outweigh the shortfalls!
- Property Valuation Kolkata: Over the last 20 years, the valuation trend of properties in Kolkata has been on an upswing. This means that if you bought a house in Kolkata at the turn of the millennium, you’d have amassed significant wealth by now. Various International Property Consultants (IPCs) recognize Kolkata as one of the fastest-growing cities in the country in terms of infrastructure, civic planning, and shift of commerce. The City of Joy has outgrown mature property markets such as Noida, Gurgaon, and Mumbai over the last 10 years.
- Emerging as an IT Hub: Kolkata is slowly transitioning from the colonial city of the old world to a thriving IT hub. Major Indian and international IT giants such as Wipro, Infosys, HCL Technologies, TCS among many others have set up campuses in the city that run into millions of sq.ft. employing a few lakh people. As this number grows in the coming years, the spillover effect will cause a spike in the demand for residential real estate for lease as well as for sale. Buying a flat in Kolkata will secure these future opportunities for growth for you and your family.
- Government subsidies: To propel the distressed real estate sector in Kolkata, the State Government of West Bengal along with the centre has launched subsided plans like PMAY Scheme and Nijashree Scheme. Both schemes are credit-linked subsidy schemes that offer an interest subsidy on home loans while the Nijashree for those buying a flat in Kolkata for the first time.
- Infrastructure Development: Given the rapid rise of the IT sector in pockets across the city such as New Town and Joka, major infrastructural developments are also being raked up by the government to keep pace with this growth. The developments in the city such as East-West Metro as well as demarcated SEZs will only improve the commercial prospects of the city in the future. These developments will improve the quality of life of all citizens in Kolkata for a long-time to come.
- Having a permanent roof over your head: The constant hassle of moving homes is tiresome! While some of us may move around to follow a certain career trajectory, there is no sweeter feeling than having a permanent address to call your own. No landlord troubles, endless negotiations on rent escalation, no living by someone else’s rules. Add to that the hassle of changing your address on your official documentation every few years- truly a task. Buying a flat in Kolkata will give you a sense of peace and security that few other life-events can compare to!
- Capping your monthly outflow of rent: For most folks that lease an apartment in the city, rent is a recurring monthly expense that burns a hole in the pocket and eats up a significant part of the monthly income. In certain cases, the onus of paying the maintenance to the society also falls on the tenant’s head. So while you may be able to curtail expenses in other aspects of your life, rent is a form of expenditure that you just can’t avoid unless you own a home. Buying a flat in Kolkata can rid you of the stress of paying monthly rent and help you commit your savings elsewhere.
- Asset-Creation: Land is a scarce resource; everything else in the world can be scaled up but the land will be limited. Hence, by buying a flat in Kolkata, you are buying a home in one of the fastest-growing real estate markets in the country. Whether you invest in flats in Kolkata North and/or flats in Kolkata South or whether you land up buying a duplex in Kolkata, the long-term return on investment from this purchase decision is poised to be lucrative. Depending on your eligibility for a home-loan, you can actually pay an EMI towards owning a house as compared to paying rent which is pure expenditure with zero capital appreciation.
- Rental Yield: While most of us consider buying a flat in Kolkata for end-use, that is, to inhabit ourselves, flats in Kolkata are also a source of a monthly rental income for many homebuyers with multiple real estate interests. You can buy apartments or houses in Kolkata, and rent them out to those looking for a home. What’s more is that a rented house attracts a yearly rent escalation of 5-7% which further improves your yield and annual income. This will give you a steady passive income which you can choose to reinvest, save for retirement or spend on leisure at will!
- Taxation relief: Most people buying a flat in Kolkata do so after availing of external financing options in the form of a home loan. Not only does this method ensure that people don’t have to wait till they are in their 40s and 50s before they have accumulated savings that are sufficient to buy a house, but it also gives them the option of maintaining sufficient liquidity and being eligible to tax breaks. You can choose an EMI scheme that suits your monthly earning capacity while gaining access to income tax relief on the principal as well as the interest component of your home loan.
- Capital Appreciation: As time progresses further, investments compound and create value for the investor. By buying a flat in Kolkata, you’re parking your money in an asset class that will only grow with time as the population grows and the city opens its doors to commerce and larger business interests. Investors holding properties in Kolkata will definitely be in a position to sell them for a far greater value than their purchase price thereby creating wealth.
- Customization: When you live in a rented flat, the flexibility to customize the apartment to suit your specific needs is limited. Even with an adjusting and understanding landlord, you may not be able to redesign rooms and decorate the interiors that truly fit the needs of your family. Some degree of compromise is always going to be part of the mix. Buying a flat in Kolkata can give you the freedom to do up your home the way you like, without external opinion or interference. Once you become a homebuyer, you can remodel your house, paint your walls and furnish the interiors any way you please. You can let your personality flow through in every sq.ft of your home!
- Loan against property: While the financial sector is abuzz with all kinds of easy financing schemes to suit different life needs, these facilities are often extended at a prohibitive interest rate, often averaging over 12 – 15% per annum. Availing a loan against property is a secured loan, hence, most banks offer a rate of 6 – 7% to homeowners against their real estate assets. This 5-6% gap in the interest rate can lead to sizable savings in interest costs over the long-term and hence reduce the loan burden that is typically associated with seeking capital in a similar way.
- Status Symbol: Buying a flat in Kolkata is a rite of passage. Transitioning from living in a rented apartment to owning your home is a sign of success by any measure. Not only will you secure a safe space for yourself and your loved ones, but you will also elevate your standing in society and your social circles. Moreover, hosting people over at your house, on your own terms, for a variety of reasons or occasions is a different joy altogether. You can take pride in showing off the home you’ve built to all your guests!
Home is where the heart is. While this purchase surmounts to be among the most expensive you may ever make in your life, buying a flat in Kolkata will give you and your family an unmatched sense of security and stability. It will give you a permanent roof over your head, give you a safe space to make memories, make you eligible for several tax breaks and even provide financial security for your old age. Irrespective of the stage in your life and/or career that you’re currently at, a home purchase is definitely a life-event you must plan for; it will hold the key to long-term happiness.